Legal Question in Wills and Trusts in Texas
making money for the Trust
If I have been given the right--even admonished to do so-to do any number of things to ''grow'' the funds in the family Trust I manage, couldn't I take out a loan on the funds and pay it back at a higher interest rate than the interest the Trust money is now garnering at the bank and make money for the Trust in this way. I would be in essence ''growing'' the Trust and meeting a need I have at the same time.
Thank you for your consideration
2 Answers from Attorneys
Re: making money for the Trust
You are prohibited from borrowing money from the trust for your personal obligations. You can 'grow' the trust by investing money in bank CDs that pay better interest than a simple savings account.
Re: making money for the Trust
That would be self-dealing and could be a breach of your fiduciary duty.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
